As auto finance evolves, so must the underpinning technology solutions. Collaborating with fintechs help finance companies stay ahead of the competition and drive innovation. This includes partnering on artificial intelligence (AI), blockchain and mobile payments. It’s clear that AI will play a significant role in separating the winners from the losers.
Legacy systems are deeply entrenched in auto finance and they aren’t going away soon. So the “winners” deploying AI will be those that integrate it seamlessly with these legacy systems. The key to success is being agile enough to deploy AI rapidly and mature enough to have deep integrations. And, having the knowledge to build out those capacities.
Machine learning and AI already help auto finance companies automate manual processes, identify potential risks, and improve decision-making. This includes AI-powered chatbots for customer support and automated loan approval processes.
One of the most exciting recent developments is the rise of transformer models in natural language processing. These models use a complex network of algorithms to interpret and process human language. This allows them to be fine-tuned to specific use cases such as verifying and onboarding auto loans. Leveraging masked language models to predict missing words, transformer models can be trained on ground truth annotated data to improve accuracy and reliability.
At Informed, we leverage transformer models to create a cutting-edge solution for auto loan verification and onboarding. Our technology is built on top of state-of-the-art models such as BERT and GPT-3. This allows real time processing and analysis of vast amounts. With fine-tuned models, the results are accurate and reliable. This enables auto finance companies streamline their loan application processes and reduce fraud risk.
Big Data Analytics
Big data analytics provide valuable insights into customer behavior, risk management, and fraud detection. Auto finance companies leverage data analytics to identify trends, predict customer needs, improve decision-making and reward dealers who consistently provide clean, compliant deals.
Legacy systems cannot be the reason innovation stops, but ignoring this critical issue can a barrier to entry. A key advantage to these new technologies is that they learn and adapt over time, ensuring big data analytics absorb new data and updates models. At Informed, we build cutting edge solutions and deliver the best possible results while integrating into existing legacy systems. The solution has a foundation of ground truth annotated data, which improves the accuracy of models and reduces the risk of errors, building trust.
Ultimately, partnering with fintechs and leveraging advanced technologies such as AI, transformer models, and big data analytics is crucial to keep auto finance companies competitive and drive innovation and digital transformation in the industry.
An earlier version of this article appeared on Auto Finance News.
With more than 15 years’ experience in the financial services industry, including tenures at Santander Consumer USA and Visa, Jessica Gonzalez is now the Director of Lending Strategies at Informed.IQ.